Using the following assumptions, calculate the Adjusted Basis and the Capital Gain from Appreciation for tax purposes: Acquisition Purchase Price: $1,400,000 Acquisition Costs: $20,000 Cost Recovery: $177,708 Disposition Sales Price: $1,631,000 Costs of Sale: 5% of Sales Price 1. Adjusted Basis = $1,242,292 Capital Gain from Appreciation = $129,450 2. Adjusted Basis = $1,631,000 Capital Gain from Appreciation = $129,450 3. Adjusted Basis = $1,242,292 Capital Gain from Appreciation = $177,708 4. None of the above